Bulletin

Plummeting gold price drives down Canadian stocks

NathanBecker

SAN FRANCISCO (MarketWatch) -- A precipitous drop in the price of gold as well as the continued descent of oil prices led the commodities-laden Canadian stock market lower Monday.

The S&P/TSX Composite Index (SPTSX) lost 138.55 points, or 1%, to close at 12,203.19 in Toronto.

Decliners outnumbered advancers 969 to 578.

Gold futures on the Nymex lost $36.50 to close at $828.30 -- their lowest level of the year -- leading investors to sell off mining stocks, which pushed the materials sector index down 4.7%. See Metals Stocks.

"It was a very Canada-unfriendly day with the oil price down, the gold price down sharply and naturally the Canadian dollar following suit," said George Vasic, equities strategist at UBS Securities Canada.

Oil for September delivery fell 75 cents to $114.45 a barrel in New York, pulling the energy sector 0.2% lower. See Futures Movers.

Leading decliners included Potash Corp. (POT), down 6.3%; First Quantum Minerals Ltd. (FM), down 8.4%; and Agrium Inc. (AGU), down 4.7%.

Gaining TSX sectors included financials and information technology, each up 0.1%.

"The parts that did well south of the border, we don't have a lot of -- things like technology and those sorts of areas," Vasic said.

The TSX technology sector holds about 2% weight among the TSX sectors, compared with materials, which accounts for about 20%.

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